HONG KONG (BLOOMBERG) – US non-public fairness agency TA Associates is contemplating strategic choices for its bubble tea chain Gong Cha, together with a possible sale or an preliminary public providing (IPO), in response to folks with information of the matter.
The buyout agency is working with Citigroup to establish the most effective course for Gong Cha, mentioned the folks. The worth of the enterprise could possibly be not less than US$600 million (S$819 million), and a sale or an IPO may occur as quickly as subsequent yr, they mentioned.
The proprietor may additionally go for a stake sale to a strategic associate to assist the chain increase to new markets corresponding to China, mentioned one of many folks.
Deliberations are at an early stage, and particulars corresponding to timing may change, they added. A consultant for TA Associates didn’t reply to requests looking for remark and a Citigroup spokesman declined to remark.
Gong Cha, which refers back to the act of providing tea as a tribute to the emperor in historic China, was based in Kaohsiung in southern Taiwan in 2006. Moreover Taiwanese-style bubble tea, it additionally gives different speciality tea-based drinks.
The chain presently operates greater than 1,300 retailers globally, together with in Australia, Japan, Singapore, South Korea, Britain and the USA, in response to TA Associates’ web site.
TA Associates acquired Gong Cha from Unison Capital in 2019 for an undisclosed quantity.